Ontario Proposes Expanded HST Rebate to Lower Cost of New Homes

The proposal would remove the full 13 per cent HST for eligible buyers purchasing new homes valued up to $1 million, offering a maximum rebate of $130,000. The rebate would remain at that level for homes valued up to $1.5 million, before gradually decreasing for higher-priced properties.

Joint Federal-Provincial Effort to Lower Housing Costs

The plan is being advanced in partnership with the federal government, which has agreed to cost-share the initiative, subject to federal legislation. The collaboration is expected to deliver nearly $2.2 billion in combined tax relief for housing across Ontario.

We’re delivering on our promise to protect Ontario by rebating the full HST on new homes in the province, saving homebuyers up to $130,000.

Working with the federal government, we’re keeping the dream of homeownership alive and keeping workers in our construction sector on the… pic.twitter.com/mAtm8luysS

— Doug Ford (@fordnation) March 25, 2026

Premier Doug Ford said the proposal is part of a broader strategy to address affordability amid ongoing economic uncertainty.

“Today’s announcement will provide meaningful and significant relief to the people of Ontario, helping thousands more families realize the dream of homeownership and boosting Ontario’s economy,” Ford said.

Temporary Expansion to Spur Housing Starts

The expanded rebate is proposed as a one-year measure, running from April 1, 2026, to March 31, 2027, and would apply to both owner-occupied homes and qualifying rental properties.

According to the province, the enhanced rebate could help generate:

• Up to 8,000 additional housing starts in 2026
• Approximately 21,000 jobs
• $2.7 billion in GDP growth

Finance Minister Peter Bethlenfalvy said the measure targets one of the largest costs faced by Ontarians.

“We are supporting home affordability while providing relief to hardworking Ontario families on one of the biggest financial transactions of their lives,” Bethlenfalvy said.

Broader Housing Strategy and Supply Measures

The HST rebate expansion builds on previous measures introduced by the province and federal government to support first-time homebuyers and increase housing supply.

Ontario is also:

• Removing the eight per cent provincial portion of the HST on qualifying purpose-built rental housing
• Investing in housing-enabling infrastructure through the $4 billion Municipal Housing Infrastructure Program
• Providing $1.2 billion through the Building Faster Fund to incentivize municipalities to accelerate housing construction

Municipal leaders have welcomed the proposal, citing its potential to improve affordability and increase housing supply.

Mississauga Mayor Carolyn Parrish said the rebate could help more residents enter the housing market while supporting local development efforts.

Eligibility and Implementation Details

Eligibility requirements for the expanded rebate will remain consistent with existing rules, including that the home must be used as a primary residence or residential rental property.

Further details are expected following the full release of the 2026 Ontario Budget, with implementation dependent in part on federal legislative approval.

Addressing Ontario’s Housing Affordability Challenge

The proposed HST rebate expansion reflects the province’s broader goal of increasing housing supply and reducing costs for buyers, while encouraging builders to accelerate new developments.

Officials say the measure is part of a coordinated approach across governments to address housing affordability, improve market access and support long-term economic growth.

For more coverage on housing policy, affordability and development across Ontario, follow GTA Today.